Capital Raising - Zimbabwe | Statista Market Forecast

The country of Zimbabwe is projected to reach a total Capital Raised of US$985.30k in the Capital Raising market market by 2024.
Digital Capital Raising is set to dominate Zimbabwe's market with a projected volume of US$985.30k in 2024.
In global comparison, the United States will lead in Capital Raised, generating US$195.4bn in 2024.
Amid Zimbabwe's economic challenges, the capital raising market in Zimbabwe is seeing a shift towards alternative fundraising methods to attract investors.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Zimbabwe has been experiencing significant development and growth in recent years.

Customer preferences: Investors in Zimbabwe have shown a strong preference for capital raising activities, particularly in the form of equity financing. This is due to the potential for higher returns and the opportunity to participate in the ownership and growth of companies. Additionally, there is a growing interest in crowdfunding platforms, which allow individuals to invest in a diverse range of projects and businesses.

Trends in the market: One of the key trends in the capital raising market in Zimbabwe is the increasing use of technology and digital platforms. This has made it easier for companies to access capital and for investors to find investment opportunities. Online crowdfunding platforms have gained popularity, providing a convenient and efficient way for entrepreneurs to raise funds and for investors to diversify their portfolios. Another trend is the emergence of impact investing, where investors seek to generate positive social and environmental impact alongside financial returns. This trend is driven by the increasing awareness of environmental and social issues, as well as the desire to align investment decisions with personal values.

Local special circumstances: Zimbabwe has a vibrant entrepreneurial ecosystem, with a large number of small and medium-sized enterprises (SMEs) seeking capital to fund their growth and expansion. These companies often face challenges in accessing traditional financing from banks, making alternative sources of capital such as equity financing and crowdfunding platforms more attractive. Furthermore, the government of Zimbabwe has implemented policies and initiatives to support entrepreneurship and innovation. This includes the establishment of innovation hubs and incubators, as well as the introduction of tax incentives for investors in certain sectors. These local special circumstances have created a favorable environment for capital raising activities.

Underlying macroeconomic factors: The development of the capital raising market in Zimbabwe is also influenced by underlying macroeconomic factors. The country has experienced periods of economic instability and hyperinflation in the past, which have eroded investor confidence and hindered capital raising activities. However, recent economic reforms and stabilization measures have improved the business environment and restored investor confidence. Additionally, Zimbabwe has a young and growing population, which presents opportunities for investment and entrepreneurship. The country has a high level of mobile phone penetration and internet connectivity, providing a conducive environment for the growth of digital platforms and fintech solutions. In conclusion, the Capital Raising market in Zimbabwe is developing due to customer preferences for equity financing and crowdfunding platforms, as well as the use of technology and digital platforms. The local special circumstances, such as a vibrant entrepreneurial ecosystem and government support for entrepreneurship, further contribute to the growth of the market. Underlying macroeconomic factors, including economic reforms and a young population, also play a significant role in the development of the capital raising market in Zimbabwe.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.